Transsion profits increased 27% in 2023 H1 - PingWest

Transsion profits increased 27% in 2023 H1

Transsion profits increased 27% in 2023 H1

August 29, 2023 4:00 pm

Chinese key phone vendor Transsion reported a 27.1% annual increase for the first half of 2023 in its net profit attributed to shareholders, raising it to RMB 2.1 billion ($283.3 million), the company said Tuesday. Meanwhile, revenue soared to RMB 250.29 billion, marking an 8.31% increase year-over-year.

The firm attributed such increases to consistently exploring emerging markets and advancing product upgrades, resulting in an increase in total shipments and sales revenue. Also, the firm has benefited from the upgrade in product structure and optimization of costs, leading to an improvement in the gross profit margin and a corresponding increase in gross profit.

In the first half of 2023, the net cash flow from the company’s operating activities increased by RMB 7.621 billion, a year-on-year increase of 76.21%. Transsion attributed this mainly to business revenue growth and sales receipts increase during this period. 

Concurrently, due to the rapid growth in sales in the second quarter, the corresponding payments for raw material purchases were not yet due. This resulted in a significant decrease in the cash paid for goods purchases during this period.

The company boasts three major smartphone brands: Tecno, Itel and Infinix. It held a 13.9% share. In particular, during the first half of 2023, the company outperformed in Africa, capturing over 40% of the market, according to IDC.

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